MOUNTING COSTS

New Zealand Herald, Volume LXXIV, Issue 22628, 16 January 1937, Page 10

MOUNTING COSTS

The effect of wage and salary restorations and of reduced working hours is being increasingly shown in returns of railway revenue and expenditure. The latest statement, showing the position up to December 5, reveals a net revenue of £389,128 for the period of 36 weeks, compared with £431,382 for the corresponding portion of 1935-36—a decrease of £42,254. It is wholly the result of increased expenditure, for the gross revenue has been growing steadily since the year opened. For the whole of 1935-36 there was a net yield of £1,051,477, representing 1.94 per cent on £54,253,059, the capital cost shown by the department for all open lines. The Budget estimated a return of £900,000 for the current year, a decrease of £151,477. Results to date are proportionately better than the forecast, but that does not mean it will not prove accurate in the long run. Meantime there is no question about increased costs. The working expenses for the nine periods of four weeks from April 1 to December 5, 1936, compared with those for the corresponding periods of 1935, are shown in the following table:— 1930 1935 Increase Period to £ £ £ April 25.. 442.145 414,513 27,632 May 23 . . 488.393 434.261 54,132 June 20 . . 484,209 437,651 46,558 Jn Ivlß . . 479.106 440,071 39.035 Aug. 15 . . 522,554 442,849 79,705 Sept. 12 . . 525,653 440,686 84,967 Oct. 10 . . 534,421 434,967 99,454 Nov. 7. . 535,719 494.624 41,095 Dec. 5. . 559,369 458;421 100,948 The comparison shows how costs in the department have been increased. It should be clearly realised that private industry everywhere is being called upon to meet similar costs on account of wage restorations and shorter hours. Their price must be paid, and it is bound to be reflected in other prices, those which the public must pay for everything it needs.